Co-operative Bank is offering a wide range of Trade Finance solutions that will enable importers and exporters conduct international transactions that facilitate the movement of goods and services from one point to another, both locally and internationally.
The financing is offered to suppliers with LPOs from reputable companies to enable them execute their customers’ orders when they do not have the required funds.
The types of finance the lender offers include;
LPO Financing
This is financing offered to suppliers with LPOs from reputable companies, to enable them execute their customers’ orders when they do not have the required funds.
- Maximum loan – 60 percent of the value of the LPO less all of the bank’s charges
- Minimum loan – Sh50,000
- Tenor- Up to 6 months
Structured Trade and Commodity Finance
Cooperative Bank can finance your business as one executes bigger deals, and takes advantage of economies of scale to make higher profit margins.
Bank Guarantees
The bank offers written and irreversible guarantees that assures your supplier, customer or beneficiary of payment in the case that one does not fulfill their contractual obligation.
This covers bid/tender bonds, performance bonds, advance payment bonds and credit guarantees. These reassure the beneficiary of payment and reduce the level of risk involved in the business transaction.
Invoice Discounting
Co-op Bank offers Invoice Discounting where one can withdraw money against sales invoices before payments are done thus enabling the improvement of one’s business’ working capital and cash flow.
- Maximum loan – 80 percent of the value of invoice less all of the bank’s charges
- Minimum loan – Sh50,000
- Maximum tenor – 2 months’ subject to the invoice period
- Availability – Facility will revolve for 12 months upon which supplier will be reviewed for renewal
Letters of Credit
Co-op Bank offers a Letter of Credit where one can assure a beneficiary of payment once the terms of a contract are fulfilled, thereby eliminating risk and setting the beneficiary’s mind at ease.
Pre-shipment Financing
These include pre-export finance and import finance loans which are available to both importers and exporters on a short to long term basis.
Import Finance Facility
This facility is available to importers who have receivables from identified and confirmed off takers in the same currency as the facility.
Post Import Finance Facility
After goods have been shipped to the importer, the bank pays the shipper on behalf of the customer and books a short term facility to be paid off with the receivables once the goods have been sold.
It is best suited for importers who are experiencing a mismatch between payment for imports and the receivables.
Bills Discounting
The bank provides exporters with an advance to ensure they remain liquid as they continue with their business.
Bills Avalization
This is where the bank confirms that the customer will honor a certain future payment by signing on a bill of exchange on behalf of its customer.
Stock Financing
This facilitates importation of raw materials under letters of credit and guarantees. It enables the customer to increase his business value, efficiency and productivity.
